Theory question 104
Marketing EnvironmentExplain the following marketing environmental factors. (a) Political; (b) Cultural; (c) Technological; (d) Economic; (e) Social.
Show the model answer
(a) Political: government actions, laws, policies and stability that affect business (e.g. bans, taxes, import restrictions).
(b) Cultural: the beliefs, values, language, religion and customs of a society that shape what people buy.
(c) Technological: new inventions and methods (internet, machines) that create new products and change how firms produce and market.
(d) Economic: income, inflation, interest rates, exchange rates and employment levels that affect people's purchasing power.
(e) Social: population size and structure, family, reference groups, social class and lifestyles that influence buying.
Define each factor and give an example of how it affects marketing.